QUAD CITIES, Ill. – Protecting against gasoline theft is taking the convenience out of convenience stores. Jeff Lenard, NACS spokesman, told the Quad-Cities Online that the only sure-fire way to stop a thief from gassing and dashing is to require all customers to prepay – one more thing taken off the honor system.
And while more retailers protecting their petroleum product by requiring prepayment, Lenard said business is lost because of that. “First off, you make the convenience store inconvenient,” he said. “If you require prepay and another company doesn’t, you will lose customers. Maybe not all, but some. And you will lose them for good.”
Lenard said technology will bring convenience back. He pointed out that the national chain of QuikTrip convenience stores has unveiled a PumpStart Card program, which allows customers to pay cash after pumping, but still holds them accountable. The first time a customer pays by cash, he or she can sign up for a PumpStart Card, which will tie his or her name and information to a swipe card. After that, customers can swipe the card first to activate the pump, then pay cash inside the store after filling up. “If you were to ‘forget’ to pay, they have your contact information,” Lenard said.
Manary’s 41st convenience store in Moline does not require prepayment. Store manager David Manary told Quad-Cities Online that gasoline theft hasn’t been a significant problem, but that it does happen. “These are people looking for an easy way to make a buck,” he said. “They could take $44. That’s not a kid grabbing a piece of gum – that’s a professional.”
While security measures are in place, including surveillance cameras, Manary said thieves know how to beat the system by pulling up in a way that keeps their license plates hidden. He said they also manage to speed away almost the instant the pump turns off.
Gasoline theft has cost the convenience store industry more than $400 million dollars in the last two years, according to NACS State of the Industry data. More than $300 million worth of motor fuel was stolen in 2005. That declined to $122 million in 2006, mainly due to more companies requiring customers to pay before pumping.
Lenard attributes gasoline theft to misdirected consumer anger. “Customers presume [retailers] are making money hand over fist,” he said. “A typical retailer, over the course of the year, makes about 2 cents (profit) per gallon.”
Lenard said requiring prepayment encourages customers to use credit cards at the pump, but then credit-card processing fees cause stations to lose about 9 cents in profit per gallon sold, compared to cash buyers.